Bitcoin the most dominant cryptocurrency broke the resistance of 6,000 dollars last Wednesday. At this moment it's around USD 6,400 dollars. What's next? Why the barrier of 6,700 seems to be so important?

Check out  the next chart:

As you can observe it shows 1 year exchange rate Bitcoin (BTC)/ USD. The high peaks appeared in June and August over USD 8000 dollars. The flat trend around the level of USD 6,500 lasted from September till November. Strong bearish trend surged from November to January as well as the bull rise during the last 3 months.  6,700 dollars per 1 Bitcoin seems to be an important resistance due to the fact that this resistance had been maintained for 2 months in row from september to November, 2018. 

In the last month Bitcoin rose over 50% from 4,000 dollars to over 6,000 dollars. Last October 29th, the bitcoin network had 333,871 transactions per 24 hours, comparing to last Wednesday's records of 392,029 transactions; whose growth was over 17.6%. The power of mining grew over 300% in 7 months from 10,616.495 TH/s to 50,641.334 TH/s on May 7th. There were  9,389 active public nodes in October, comparing to 9,350 active nodes last Wednesday. Generally, the Bitcoin network grew. 

One of the most important indicator is Bitcoin dominance in the crypto market, it came from 49% in April to 58.6% today on May 10th.

The only dark side of the bitcoin bull run may be steady flat rate or even bearish price of other cryptocurrencies:

XRP has been located on its lows around 0.29 dollars per 1 XRP. Bitcoin Cash didn't overpass the key 310 dollar resistance  - in the last days it's been within the range 274 USD to 308 USD per 1 BCH, Litecoin has been within the range 72-78 dollars. It seems like their resistances are strong, and it's also due to the investors' preference for Bitcoin. Perhaps this trend may shift in the next days. XRP dominance in the market plunged from 9% to 6.8%, ETH lost a little bit of its dominance too. 

Finally to answer the headline question: I think that Bitcoin will likely break the aforementioned resistance but there is also a great chance of strong pullback in few weeks due to the fact of overbought Bitcoin. Pullback is a mechanism when the market is balancing bids and sales, and it's an important mechanism in trading. 

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